User Account

All Pages

Net cash received over the life of the bond investment

Assignment Help Financial Accounting
Reference no: EM132420723

Question 1: Annapolis Company purchased a $2,000, 4%, 5-year bond at 101 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar)

Question 2: Ocean Pines Company had net income $525,000. They also had depreciation expense of $150,000, an increase or (decrease) in accounts receivable of $10,000, and an increase or (decrease) in inventory of $35,000. Ocean Pines prepares their Statement of Cash Flows using the indirect method. Use this information to determine the dollar value of cash provided or (used) by operating activities. If the total is a use of cash, enter as a negative number. (a negative number for accounts receivable or inventory indicates that the balance decreased)

Question 3: On January 2, 2019, All Good Company purchased 8,000 shares of the stock of Big Bad Company, and DID NOT obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $14 per share, and represents a 10% ownership stake. Big Bad Company made $450,000 of net income in 2019, and paid dividends to All Good Company of $15,000 on December 15, 2019. On December 31, 2019, Big Bad Company's stock was trading on the open market for $17.50 per share at the end of the year. Use this information to determine the unrealized gain or loss on the investment that should be reported at year end by All Good Company. If it is a loss, enter as a negative number. Round to nearest whole dollar.

Question 4: On January 2, 2018, All Good Company purchased 5,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $17 per share, and represents a 30% ownership stake. Big Bad Company made $500,000 of net income in 2018, and paid dividends to All Good Company of $20,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $16 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar.

Question 5: Allstar Company signed a $250,000 mortgage on July 1, 2018 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2,600 at the end of each month. The interest rate is 7.0% per year. How much interest expense will be paid on August 31, 2018? (Round your answer to the nearest whole dollar.)

Reference no: EM132420723

Questions Cloud

What are the features of a mixed economic system : What is an economic system? What are the basic problems of an economic system? Explain the role of government in solving problems that arise from different.
Applying the units-of-production method of depreciation : Calculate the accumulated depreciation after 3 years applying the units-of-production method of depreciation?
List the three ethical values believe the company reflects : Based on your analysis of the company's ethical values,write an ethical best practice that other company should implement into their ethical marketing practices
Why did the sec create the regulation ac : The Securities and Exchange Commission ("Commission" "SEC" ) is adopting new Regulation Analyst Certification ("Regulation AC").
Net cash received over the life of the bond investment : The straight line method of amortization is used for both premiums & discounts. What is the net cash received over the life of the bond investment?
Create a simple argument visualisation : Create a simple argument visualisation using the MindMup software. In Assessment 4, you will produce a report which details the argument you construct
Determine how to make successful business decisions : Managerial Economics provides insight on how to make successful business decisions. Please provide your favorite topics discussed and tell why.
Journal entries to account of taylor ltd : Taylor ltd makes an offer to the public for investors to subscribe for 10 million shares. The shares are issued at $2 per share. applications for shares close
How do you plan to apply the knowledge and skills : How do you plan to apply the knowledge and skills you have returned to your home country after completing your education abroad program in the area you would.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the amount collected by sanborn on april twenty five

Assume a return of merchandise on April 20 of $600 and collection in full on April 25. What is the amount collected by Sanborn on April 25?

  Double taxation of dividends

Double taxation of dividends. Please explain this in your best layman's terms. Also, please state whether you agree or disagree with this and why

  Explain fall in cba share price referring to capital markets

ACC80005 FINANCIAL ACCOUNTING THEORY. After reading the above extract, explain the fall in the CBA share price referring to capital markets research

  Adjusting-closing entry study problem

ADJUSTING-CLOSING ENTRY STUDY PROBLEM. JHJ CAR RENTAL COMPANYY HAD THE FOLLOWING TRANSACTIONS: SET UP FOLLOWING T-ACCOUNTS

  Project with profitability index-internal rate of return

Select all of the following projects which should be accepted? A project with a Profitability Index of 1.2. A project with an internal rate of Return of 12% when the discount rate is 10%

  Prepare the entry for the admission of the partners

Fox, George, and Hayes form a partnership on 1-1-20X1. Fox contributes cash of $40,000 and equipment with a book value to Fox of $8,000 and a fair market value of $10,000. A bonus is to be allocated to George computed as 10 percent of income after th..

  Cost of timber sold related to depletion for 1998

Evaluate the depreciation expense and the cost of timber sold related to depletion for 1998 and determine the cost of timber sold related to depletion for 2009.

  Compute basic and diluted earnings per share

Colson Corp. had $700,000 net income in 2015. On January 1, 2015 there were 250,000 shares of common stock outstanding. On April 1, 30,000 shares were issued and on September 1, Colson Corp bought 40,000 shares of treasury stock. There are 30,000 opt..

  What amount of deferred tax asset should west report

West determined that no valuation allowance was needed. What amount of deferred tax asset should West report in its December 31, 2010 balance sheet

  Costs incurred in drilling for oil are classified as

Financial accounting and reporting for oil and gas producing companies has been debated for many years in the United States by the accounting profession, regulatory agencies, industry groups, and the companies themselves. The principal focus in recen..

  Is the expenditure deductible or nondeductible

Is the $18,000 expenditure deductible or nondeductible? Including proper citations to relevant authority.

  What is the net cash flow of the project for the years

What is the NPV of the project? (Do not include the dollar sign ($).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd